The American Bakers Association (ABA) opposes the Department of Labor’s (DOL) changes to the overtime exemption threshold, citing a surge in labor costs and the need to reduce employee flexibility

The DOL’s final rule establishes a new overtime pay threshold of $47,476 a year for those working more than 40 hours a week. The rule also allows for this threshold to increase every three years.

“While the overtime exemption should be updated, this new rule will dramatically impact the way in which the baking industry operates,” said Lee Sanders, Senior Vice President of Government Relations and Public Affairs. “Many who have progressed into a stable salary position may find themselves back in hourly positions with little to none of the flexibility they once had.”

The rule will go into effect on December 1, 2016. “Bakers will struggle to implement these new thresholds before the deadline,” added Sanders. “The industry will need years to comply – this is not a simple task like the DOL is making it appear to be.” ABA will continue to work with Congress to seek to prevent the rule from being implemented.